I would just accept the tax on SS as an extra cost of doing well in flipping and being productive instead of retired.The only way to do flipping without taxation is to do it inside your retirement accounts, as in self-directed IRA.

@John Umphress Excellent John.

@Tony AsbilleI used buildium before.. it's excellent but can be very sophisticated at times.. preparing financial statements is amazing

Excellent, that solves one tax entity. 

We both have excellent credit scores and zero debt, but not a huge downpayment.

They rehab the property to excellent standards - probably offer a warranty on their work.3. 

I don’t know about the specific property you are talking about, but my guess would be someone is using a HUD financing product that comes with a restriction that they have to rent to people below a certain standard compared to the median in their market.

Excellent school district was also a bonus.

I gathered the numbers from the banks on both and she inputted everything into her excel sheet.  

On my out of state properties I pay a flat 10% and we've been able to build a strong and productive relationship.